Zelle fraud under fire as New York sues the payment app’s creators over $1 billion in scam losses. Here's what users need to know.

The lawsuit alleges that Early Warning Services, Zelle's parent, failed to implement safeguards, enabling fraudsters to steal more than $1 billion.

Zelle was sued on Wednesday by New York Attorney General Letitia James, who said the electronic payment platform's refusal to adopt critical safety features enabled fraudsters to steal more than $1 billion from consumers.